American Airlines believes deal with pilots is close, despite vote on possible strike
DALLAS - American Airlines' pilots union took steps this week that move it closer to a possible strike.
Meanwhile, the Fort Worth-based airline is in indicating it's ready to match a competitor's offer for higher raises.
U.S. airlines are still struggling to combat pilot shortages that set in soon after the start of the pandemic.
A spokesperson for American Airlines said the airline believes a deal is within reach, but negotiations continue.
American Airlines is promising significant raises for pilots, but conversations about a strike remain.
"There’s been an ongoing pilot shortage," said Scott Keyes, founder of Going.com.
Keyes said the pilot shortage gives leverage to the Allied Pilots Association, which is the union representing American Airlines pilots.
On Thursday, the association’s board voted unanimously to open a "strike center" and survey members on authorizing a walkout.
American Airlines pilots to vote on possible strike
Pilots for American Airlines may go on strike if the Fort Worth-based airline does not meet their demands.
"The ceiling for what pilots can expect to be paid has gone way, way up from where it was after the last round of contract negotiations," Keyes said.
The CEO of American Airlines said in a video to pilots Tuesday that he’s ready to give raises and higher retirement contributions, averaging a 40% increase over four years, matching a contract recently approved by pilots at Delta Airlines.
"I think travelers can expect to see higher air fare prices as a result of increased pilot pay, but not substantially higher air fares," Keyes added.
Nationwide, airfare has been down for seven of the past eight months, according to Keynes. It’s almost on par with pre-COVID rates.
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"They would love to double their fares overnight. They can’t do that because if they do, they know that Delta is all of a sudden is going to offer cheaper fares, United is going to offer cheaper fares, and that’s not even to mention the budget airlines," Keyes explained.
If a vote to strike is made, it would largely be symbolic. Federal law makes it nearly impossible for airline unions to conduct legal strikes.
"And I think travelers might read those headlines and see ‘Pilot Union Votes to Strike’ and be worried, ‘Oh my gosh, does that mean that my flight tomorrow on American Airlines is at risk?’ And I want to reassure those folks that is absolutely not the case," Keyes said.
Allied Pilots Association said it believes it’s crucial to get a deal done before summer travel season.